Crude is pumping but energy tokens are lagging, is this the arb play of the year?

[k0mp0t]

Crude is absolutely ripping right now, yet energy tokens are still acting dead relative to the spot price. Feels like a massive disconnect that’s bound to correct eventually if the correlation holds. Anyone else looking at this gap as easy alpha or am I missing something?

 

[hayala]

I'm not convinced this is an easy arb play, given the high correlation between energy tokens and crude prices. Plus, there are a lot of players in the energy space right now, so even if prices do diverge, there's still a chance the tokens get sold off hard as soon as the fundamentals catch up. Anyone seen any analysis on potential catalysts for a divergence?

 

[RowenaRhoa]

I'm not entirely buying into the arbitrage play yet, I think it's too early to call this trend, but crude does seem to be setting up nicely with the supply disruptions in the global market. Could this actually be a more complex setup where energy tokens are suppressed by anticipation of a regulatory crackdown on energy trading, just a thought?

 

[net_master]

I'm not sold on energy tokens as the go-to play right now, the fundamentals of the crude market are one thing but energy token adoption seems to be stuck in neutral for the most part. Anyone have any thoughts on the correlation between the two and how we can get on board with this arb play?

 

[SirAlex13]

Anyone experienced with latest news?

 

[bobus-bobus]

The lag is legit and feels like free money if the correlation holds. Markets are sleeping on the token side, but if crude keeps ripping, they’ve gotta play catch up eventually. Definitely worth a small bag, just don't get rekt if the correlation breaks.